The future is uncertain. Nobody knows how much time they have left. None of us can say for sure when we’re young whether we will even make it to retirement age. This is why it is perhaps hard for a lot of people to even start thinking about things like old-age and surviving dependants insurance (AHV), pension funds, pillar 3a and 3b at this age, not to mention how hard it can be to start saving up this early and not spend money elsewhere.
And yet this “sacrifice” really shouldn’t hurt. You can accumulate a fortune even with very little money. We’re talking sums of money that do not require a huge income, and that everyone can afford. Here’s an example for you: how many coins do you have lying around at home at this very moment? In Germany alone around 15 billion 1 and 2 cent coins are “lost”. We don’t know the figure for Switzerland, but that’s not relevant in this case. What the figure for Germany tells us very clearly is how quickly we could turn these supposedly small sums of money into a substantial amount.
Here’s another example of how you could accrue a considerable sum with small amounts of money you probably don’t even know are there in your day-to-day lives: Put the small coins in your wallet or purse to one side every day. How much would this come to? Nobody would miss a few coins, nor would it hurt, and yet they add up to CHF 50 each month. So, if we were to invest in pillar 3a once a month as soon as we turn 18, we would end up with a pension of CHF 28,200. Not a bad amount when you think this is just loose change.